Despite being a country with vast geographical expanse, abundant natural resources, and a large population, Pakistan has been plagued by economic difficulties since its establishment. The country, despite changing governments, musical chairs of power, and the continuous arrival of rulers with grand promises, has not changed.
Each passing era seems worse than the previous one, to the point where even those providing loans and aid to Pakistan are now looking at it with suspicion. As a result, Pakistan has become powerless state in the lineup of nations.
The situation is such that despite being present at an important geographic location and participating in many crucial international affairs, Pakistan’s opinions and contributions have lost significance. It holds no notable role in decisions related to the region and global trade, economy, and politics. The irony is that under the burden of repaying debts and seeking aid, even those offering assistance now view Pakistan with disdain. As a result, Pakistan has become a nation without identity and impact.
The economic condition of Pakistan has been thoroughly analyzed by key representatives of the World Bank, who not only diagnosed the pulse of the national economy but also proposed appropriate remedies for its ailments. It is undeniable that political instability is a root cause, and all the economic diseases afflicting the economy have emerged from this instability. Political instability is intertwined with the lack of consistency in policies and the absence of timely and long-term policies. When one government initiates a policy to address economic issues, another government comes and completely overturns it, starting anew.
Then, a new government comes and discards all previous efforts, and the cycle repeats. This continuous exercise of incompetence is leading the economy further away from stability and sustainability.
Financial mismanagement, corruption, and tax evasion are fundamental elements causing harm to the national treasury and economy. The country is now drowning under a pile of debts, and corruption and tax evasion are the reasons for the loss to the national treasury, forcing every government to take loans at exorbitant interest rates. These loans, in turn, create more difficulties for the national economy.
To compensate for the losses due to tax evasion and corruption, governments often resort to a policy of increasing the prices of oil, gas, and electricity. As a result, the cost of energy has surpassed all limits, and every increase in this regard is giving birth to millions, while removing line losses and electricity theft can significantly reduce the burden on the public. On the contrary, the policy of increasing prices leads to more line losses and electricity theft, and problems become more serious.
Representatives of the World Bank have paid good attention to this issue. They assert that Pakistan needs to increase its tax-to-GDP ratio to 3%, emphasizing that merely collecting taxes is not enough; there is a need to work on expenditure and tax reforms. Without providing facilities to the agricultural sector without increasing tax revenue, the revenue in the treasury will be difficult to increase. Their statement that “Pakistan’s agriculture lacks productivity; farmers are using outdated methods” is a recent lesson. However, this is not only the plight of the agricultural sector; darkness has spread across every sector of the economy.
It is necessary for all political parties to have some leaders formulate principles regarding the economy before heading into elections, based on the views of economic experts, and everyone should be responsible for implementing them. The economy cannot escape the whirlpool of crises with temporary policies.
